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Assume the economy is in long-run equilibrium. Now assume that there is a large increase in demand for U.S. exports. As a result of increased demand for U.S. exports, the OA. short-run aggregate supply curve will shift left. B. aggregate demand curve will shift left. C. aggregate demand curve will shift right. D. long-run aggregate supply curve will shift left. The new short-run equilibrium will be A. where the new aggregate demand curve intersects the original long-run aggregate supply curve. B. where the new aggregate demand curve intersects the original aggregate demand curve. OC. where the original aggregate demand curve intersects the original short-run aggregate supply curve. OD. where the new aggregate demand curve intersects the original short-run aggregate supply curve. At the new short run equilibrium, the unemployment rate will compared to the unemployment rate at the initial equilibrium, prior to the increase in exports. Which of the following best explains how the economy will adjust back to long-run equilibrium? OA. Short-run aggregate supply will increase (shift rightward) as firms and workers adjust to the new price level. B. Aggregate demand will increase, restoring the original equilibrium price and quantity. OC. Short-run aggregate supply will decrease (shift leftward) as firms and workers adjust to the new price level. OD. Aggregate demand will decrease, restoring the original equilibrium price and quantity. At the new long-run equilibrium,

Assume the economy is in long-run equilibrium. Now assume that there is a large increase in demand for U.S. exports. As a result of increased demand for U.S. exports, the OA. short-run aggregate supply curve will shift left. B. aggregate demand curve will shift left. C. aggregate demand curve will shift right. D. long-run aggregate supply curve will shift left. The new short-run equilibrium will be A. where the new aggregate demand curve intersects the original long-run aggregate supply curve. B. where the new aggregate demand curve intersects the original aggregate demand curve. OC. where the original aggregate demand curve intersects the original short-run aggregate supply curve. OD. where the new aggregate demand curve intersects the original short-run aggregate supply curve. At the new short run equilibrium, the unemployment rate will compared to the unemployment rate at the initial equilibrium, prior to the increase in exports. Which of the following best explains how the economy will adjust back to long-run equilibrium? OA. Short-run aggregate supply will increase (shift rightward) as firms and workers adjust to the new price level. B. Aggregate demand will increase, restoring the original equilibrium price and quantity. OC. Short-run aggregate supply will decrease (shift leftward) as firms and workers adjust to the new price level. OD. Aggregate demand will decrease, restoring the original equilibrium price and quantity. At the new long-run equilibrium,

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 3CQQ
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K Assume the economy is in long-run equilibrium. Now assume that there is a large increase in demand for U.S. exports. As a result of increased demand for U.S. exports, the OA. short-run aggregate supply curve will shift left. OB. aggregate demand curve will shift left. OC. aggregate demand curve will shift right. D. long-run aggregate supply curve will shift left. The new short-run equilibrium will be A. where the new aggregate demand curve intersects the original long-run aggregate supply curve. B. where the new aggregate demand curve intersects the original aggregate demand curve. OC. where the original aggregate demand curve intersects the original short-run aggregate supply curve. OD. where the new aggregate demand curve intersects the original short-run aggregate supply curve. At the new short run equilibrium, the unemployment rate will compared to the unemployment rate at the initial equilibrium, prior to the increase in exports. Which of the following best explains how the economy will adjust back to long-run equilibrium? OOOO A. Short-run aggregate supply will increase (shift rightward) as firms and workers adjust to the new price level. B. Aggregate demand will increase, restoring the original equilibrium price and quantity. OC. Short-run aggregate supply will decrease (shift leftward) as firms and workers adjust to the new price level. D. Aggregate demand will decrease, restoring the original equilibrium price and quantity. At the new long-run equilibrium,
Transcribed Image Text:K Assume the economy is in long-run equilibrium. Now assume that there is a large increase in demand for U.S. exports. As a result of increased demand for U.S. exports, the OA. short-run aggregate supply curve will shift left. OB. aggregate demand curve will shift left. OC. aggregate demand curve will shift right. D. long-run aggregate supply curve will shift left. The new short-run equilibrium will be A. where the new aggregate demand curve intersects the original long-run aggregate supply curve. B. where the new aggregate demand curve intersects the original aggregate demand curve. OC. where the original aggregate demand curve intersects the original short-run aggregate supply curve. OD. where the new aggregate demand curve intersects the original short-run aggregate supply curve. At the new short run equilibrium, the unemployment rate will compared to the unemployment rate at the initial equilibrium, prior to the increase in exports. Which of the following best explains how the economy will adjust back to long-run equilibrium? OOOO A. Short-run aggregate supply will increase (shift rightward) as firms and workers adjust to the new price level. B. Aggregate demand will increase, restoring the original equilibrium price and quantity. OC. Short-run aggregate supply will decrease (shift leftward) as firms and workers adjust to the new price level. D. Aggregate demand will decrease, restoring the original equilibrium price and quantity. At the new long-run equilibrium,
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